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Question -
(a) The time of arrival of a person at work has a uniform distribution from 8:45 am to 9:15 am. On any day, what is the probability that the person will arrive late in the office, given that office starts from 9:00am?
(b) The maintenance department of a city's electric power company finds that it is cost-efficient to replace all streetlight bulbs at once, rather than to replace the bulbs individually as they burn out. Assume that the lifetime of a bulb is normally distributed, with a mean of 3500 hours and a standard deviation of 360 hours. If the department wants no more than 2% of the bulbs to burn out before they are replaced, after how many hours should all the bulbs be replaced?
(c) Customers arrive at an ATM inside a shop at the rate of 10 per hour. Using the exponential distribution, determine (i) the probability that the next customer will arrive within 30 minutes. (ii) the probability that there will be no customer in the next hour.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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